More Money for Education: What Are the Options?

https://ed100.org/lessons/moremoney

Because education funding depends heavily on income taxes paid by the top 1% of taxpayers, it tends to boom and bust with the stock market. Polls consistently show that majorities of Californians would support taxes for schools in their own community, but California's Proposition 13 makes it very difficult to pass local taxes.

Understanding the Problem
These systemic challenges are not new, and there have been many attempts to address them. They fall into four categories:

A Larger Slice. Commit more of the state budget toward education
A Bigger Pie. Raise taxes at the state level to provide more money for education
A Different Pie. Allow local taxes to provide new money for education
Actual Pie. Hold bake sales (and other local fundraisers)

Survey results consistently show that Californians can be supportive when taxes are local, and in support of local schools. Solid majorities (roughly six in ten) say they would support a local tax to support schools in their community.

In this case, the will of the majority is not enough. By passing Proposition 13, in 1978 California voters amended the California constitution to make it very difficult to pass taxes. The theory is that voters, like Odysseus, should have the power to tie themselves to the mast to resist temptation. Prop 13 requires that local governments, including school districts, must get 2/3 voter approval to pass special taxes. Prop 13 also prohibited school districts from raising property taxes based on the value of property ("ad valorem" taxes), except for issuing General Obligation Bonds for facilities.

The main available instrument for local taxation is the "parcel tax," which has been ruled permissible because it is not "ad valorem." Parcel taxes are based on the existence of a parcel of property rather than on its value. Under the rules of Prop 13, a school district can propose a parcel tax and pass it with 2/3 of votes cast. It is very difficult to get 2/3 of voters to agree to anything, but some districts manage it.